Gov. Granholm makes announcement in Sterling Heights

The Detroit Free Press reports on what we expected from the announcement at Chrysler's Sterling Heights Assembly Plant.

Chrysler will add a second shift in early 2011 of about 900 additional workers. Many of those workers will be workers who are called back from temporary layoff.

This announcement was first made when President Obama visited the Sterling Heights plant last July (as reported by Motor Trend).

The Freep reports tax incentives totaling $850 million will mostly go to a new will go to a new paint shop for the Chrysler 200 and Dodge Avenger.

Update: 2:00 pm:

WJBK in Detroit says Governor Granholm and Chrysler executives will announce an $850 million investment and the addition of a second shift at the Sterling Heights Assembly Plant. The second shift is expected to begin in the first quarter of 2011. They report that the announcement will also launch the 2011 Chrysler 200 and Dodge Avenger.

1:44 pm:

Governor Granholm will appear with Chrysler CEO Sergio Marchionne at the Sterling Heights Assembly Plant to make an announcement soon.

A grant from the Michigan Economic Growth Authority from the Michgian Economic Development Corporation helped to keep the plant open. The Detroit News reported last October that Chrysler planned to invest $1 billion in the plant "for equipment and tooling to make midsize cars at the Sterling Heights Assembly Plant and increase production of four-cylinder engines." The paper reported then that:

No new jobs are being announced now, but a second shift of 900 workers is expected to be added in Sterling Heights next spring, if demand requires more workers to build the 2011 Chrysler 200, which replaces the Sebring and the Dodge Avenger.